A Celebrity's Credibility Is Reduced When He or She Endorses

question 110

Multiple Choice

A celebrity's credibility is reduced when he or she endorses a variety of products because ________.

• A) the economic motivation underlying the celebrity's endorsements becomes too pronounced
• B) the celebrity becomes less famous
• C) teens find celebrities more authentic than other customers
• D) the celebrity has positive associations with the products
• E) almost a quarter of advertisements use a celebrity spokesperson

---

Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term, such as rent, salaries, and insurances.

Selling Price

The amount of money for which a product or service is sold to customers.

Variable Costs

Costs that vary directly with the level of production or service volume, such as materials and labor.

Fixed Costs

Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of the level of business activity.